How many times have you read terms and conditions of any document? When you install a mobile application, software on your desktop and sometimes when you sign up on a social media channel there is always a moment when they ask you to read some terms and conditions and accept it. We blankly do so without even reading the clauses that we are agreeing to. Of course most of us think it is not harmful. But when something bad happens, we feel heartbroken.
Similarly, let us understand the importance of reading terms and conditions by understanding this case of Mr. Patel who wishes to take a loan against property more popularly known as mortgage loan.
He browsed through an offer with his existing bank and realized they were offering lower mortgage loan interest rates than most of the competition. Happy with this loan against property interest rate, Mr. Patel immediately visits the bank and applies for the best loan against property. He just reads few points in the application and signs it. When he gets his loan amount disbursed, he sees there is an upfront interest charge, processing fees and annual insurance premium deducted from the mortgage loan amount.
Why did this happen?
Mr. Patel received a lower mortgage loan amount because he did not read his loan application properly. There were terms and conditions attached to it which described all the different fees, charges, penalties that will be applied during the tenure of the loan against property. Hence by signing the loan application he cannot do anything now but pay these charges.
What he could have done?
Mr. Patel could have read the terms and conditions properly. If not, he could have asked a trusted advisor, CA etc to go through the application to understand the clauses. This would save him a lot of time and money. If he would have known earlier about these hidden charges he could have negotiated with the bank to either reduce them or waive them off. The similar scenario could have taken place for prepayment and foreclosure penalties.
We at Ruloans advise all our customers to carefully read the terms and conditions of every loan. If unsure, please ask for clarifications. Once you are clear of all the terms, then only should you sign the application. Understanding everything before signing is important as once you sign the mortgage loan application, you accept with whatever is being written in the application.
When you apply for a mortgage loan / loan against property with Ruloans, you can inquire any of your doubts and our support staff will be here to help you until you’re clear of the terms and conditions. We’ve been in this loan industry from a very long time and hence know the issues customers face, our support staff has a lot of experience and hence we can be trusted. We charge no money from any of our customers as we believe in helping them borrow the right amount.
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